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5 Things You Should Consider Before You Start Trading Stocks Online

Buying stocks online gives you the possibility to make cheap stock trades and save money. The lowest stock trading rate I found was at interactive brokers (IB). I could make a trade at IB for a dollar. This allows me to buy several smaller positions of around a thousand dollar. The benefit is a better price mix if the stock price falls. The lowest commission or fee is not the only aspect you should consider when you trade stocks online. I made a small check list what your stock broker should offer.

The top online stock trading services should provide you with all the resources you need to make well-informed financial choices and the ability to buy and sell stocks from anywhere, including from your cell phone. Some support resources include educational materials such as articles, real–time charts, streaming news, investment calculators and a user-friendly trading platform.

Here are the 5 Points:

1. Fees/Commissions
Fees and commissions can quickly escalate, most services charge fees for trades, broker assisted trades, option trades and so on. Fees and margin rates as well as requirements like minimum account balances and account maintenance fees are very important.

2. Investments Offered
Generally, all online stock trading services offer the ability to buy and sell stocks, options, mutual funds and exchange-traded funds. However, comprehensive services also provide access to a selection of international markets as well as investment services or options for retirement and education saving.

3. Trading/Investment Tools
Buy and selling stocks without the assistance of a broker can be intimidating. Online stock trading services should provide educational resources as well as monitoring tools. The best online brokers offer tools such as investment calculators, analyst reports, cell phone alerts and useful charts, chains or graphs.

4. Ease of Use
Not all investors are pros; many are just starting out or only have a small amount to invest, so we looked for services that are easy-to-use for everyone, regardless of experience. The best online brokers also offer free assistance such as tutorials, articles, FAQs, blogs and so on. Additionally, some also offer one-on-one training.

5. Support/Customer Service
Because buying and selling stocks online can be a bit nerve racking, the best services provide excellent support by telephone, email, instant messaging and chat.

What item is most important for you and what do you pay for a stock trade? Let me know below in my comment area...

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